Indian shares on track for higher open on lower Treasury yields, SEBI relief
Indian shares are likely to open higher on Friday, extending their recovery from the previous session, as a drop in US Treasury yields and changes to the closing auction session by the local markets regulator support sentiment.
GIFT Nifty futures were at 23,082 at 7:52 a.m. IST, indicating a positive start for the benchmark Nifty 50, which closed at 22,997.35 on Thursday.
The Nifty 50 and BSE Sensex posted their biggest single-day gains in four months on Thursday as a rebound in the global AI trade and earnings-driven sentiments boosted stocks.
The Securities and Exchange Board of India said on Thursday it would use volume-weighted average prices from the final 30 minutes of regular trading to settle expiring stock and index derivatives contracts, reversing its decision to use the closing auction session (CAS) following pushback from traders.
Jefferies said this should reduce expiry-day volatility under CAS, benefiting brokers whose orders remain below pre-CAS levels.
Meanwhile, longer-dated US Treasury yields fell to their lowest levels since September on concerns about slowing AI growth and bets the Federal Reserve will hold rates steady at its next meeting.
The recovery, however, may remain fragile as elevated oil prices and inflation risks could keep investors cautious, two analysts said.
Brent crude futures hovered around $106 per barrel, with Iran as investors weighed Middle East risks and possible US steps to ease restrictions on the world's "shadow fleet" of tankers. [O/R]
Foreign investors sold Indian shares worth 52.85 billion rupees ($555.99 million) on Thursday, according to provisional data. They have offloaded $32.8 billion worth of shares so far in 2026.
Asian stocks rose 1% in early trading on Friday, with buyers returning to the tech sector after a selloff on Thursday and as a decline in bond yields eased pressure. [MKTS/GLOB]
STOCKS TO WATCH
** Wipro tops second-quarter revenue expectations modestly, but its quarterly deal bookings plunged to an almost four-year low, deepening worries that India's fourth-largest IT firm is ceding market share to rivals
** Jio Financial Services reports a surge in second-quarter adjusted operating profit, as the company benefited from growth in its lending operations
** HDFC Life Insurance posts higher quarterly profit, as a recovery in policy sales through parent HDFC Bank helped drive growth
** Tech Mahindra beats July-September revenue expectations and maintains fiscal 2027 operating margin target, helped by a ramp-up in large deals across communications and other businesses
($1 = 95.0550 Indian rupees)
